Company Reports Results In-Line with Expectations

Highlights:

• Generated first quarter net sales of $1.1 billion.
• Achieved Adjusted EBITDA of $101 million.
• Realized $22 million in first quarter Free Cash Flow.
• Declared quarterly dividend of $0.30 per share.

SUSSEX, Ws. - Quad/Graphics, Inc. (NYSE: QUAD) today reported results for its first quarter ending March 31, 2015. The reported results include Brown Printing Company ("Brown Printing") from the day of acquisition on May 30, 2014. For full financial results, including reconciliations of non-GAAP financial measures, please see the accompanying information.

"Our first quarter results were in-line with our expectations, and we remain on track to achieve our 2015 financial objectives," said Joel Quadracci, Quad/Graphics Chairman, President & CEO. "We remain focused on growing market share, improving productivity, implementing sustainable cost reduction initiatives, and maintaining a strong and flexible balance sheet. We will continue to invest in our existing business while pursuing compelling acquisition opportunities, like Marin's International, a worldwide leader in the point-of-sale display industry, and, more recently, Copac Global Packaging, an international provider of innovative packaging and supply chain solutions. As we move forward, we will continue to transform both Quad/Graphics and our industry with a disciplined approach that creates value for our clients and shareholders."

Net sales for the first quarter 2015 were $1.1 billion, consistent with the first quarter 2014. First quarter Adjusted EBITDA was $101 million as compared to $107 million for the same period in 2014, and Adjusted EBITDA Margin was 9.1% compared to 9.7%. The Adjusted EBITDA variance primarily reflects ongoing industry volume and pricing pressures partially offset by additional earnings on sales generated from recent acquisitions.

First quarter 2015 Free Cash Flow was $22 million, an increase of $35 million from the same period in 2014. The increase was primarily attributed to improvements in working capital and the receipt of the $10 million Courier Corporation acquisition termination fee, which was excluded from Adjusted EBITDA as a non-recurring gain.

"Our continued strong cash generation enables us to generate value for the Company and for our shareholders despite ongoing industry challenges," said Dave Honan, Quad/Graphics Executive Vice President and Chief Financial Officer. "We use our capital to pursue compelling investment opportunities, deleverage the balance sheet through debt and pension liability reductions, and return cash to our shareholders. We continue to believe Quad/Graphics will be a significant Free Cash Flow generator, and we remain confident in our ability to pay down debt and drive future value."

Quad/Graphics' next quarterly dividend of $0.30 per share will be payable on June 19, 2015, to shareholders of record as of June 8, 2015.

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